Document Imaging for Banks and Credit Unions: Managing Paper After Digitization
Document imaging has become a cornerstone of digital transformation at banks and credit unions. Financial institutions can optimize the document review and management processes with document digitization. While scanning and imaging documents streamline operations, what happens after imaging can be easily overlooked. This blog post shares a few approaches to consider when managing paper post-imaging at your bank or credit union.
The Value of Document Imaging Technology
Modern document imaging technology has revolutionized operations in financial services by enabling digital workflows that provide more accuracy in document tracking, faster reporting, and enhanced banking experiences. With the addition of secure and scalable cloud storage, financial institutions can maintain a vast repository, reducing the risks of missing documents and ensuring compliance. However, even with powerful finance document retention solutions, one question remains constant:
What should we do with paper documents after imaging?
Despite the efficiencies gained through document management systems, retention policies vary depending on the institution’s policies, regulations, and document types. Some teams err on the side of caution, keeping all paper files to dispose of later, while others seek a more immediate approach to cut costs associated with paper storage. Although there’s no one-size-fits-all solution, we’ve seen financial institutions take several approaches to managing paper documents after imaging:
1. Shredding Immediately After Imaging
Perhaps the most aggressive approach, shredding paper immediately, eliminates unnecessary duplicate files. When paired with an intelligent ECM platform this approach provides confidence that all documents are accounted for and stored accurately within the solution. Policies can be set to shred immediately after digitization, though exceptions must be made for any documents that must be retained in hard copy format based on unique organizational guidelines, such as promissory notes or vehicle titles.
2. Disposing Files After a Waiting Period
A more conservative yet effective approach involves retaining paper versions until a predetermined amount of time has passed, as defined by the bank or credit union’s data governance policy. This approach offers peace of mind, while still enabling digital access. However, storing paper can become costly and inefficient if not carefully managed. Once the retention period is met, secure disposal must be immediate to mitigate potential risks. With a robust ECM, reminders can be automated to ensure consistency and prompt action.
3. Shredding After Imaging Quality Control
Imaging quality control (QC) is the process of verifying that documents have been digitized, stored, and organized in a way that aligns with an organization’s standards. After scanning, documents are put through the QC process for confirmation. Once verified, paper copies can be safely destroyed. This approach eliminates redundancies and bottlenecks while strengthening your document management strategy. Advanced ECM platforms reinforce this approach, offering automated workflows that can be tailored to different document types and compliance needs.
Embracing Document Imaging Best Practices with ECM Platforms
As your institution moves forward with digital transformation, adopting document imaging best practices is essential to operational efficiency and compliance. A comprehensive solution, like Alogent’s ECM suite, enhances workflows, from imaging to disposal, helping to reduce costs and manual intervention. Whether updating your imaging process or overhauling your document management strategy, choosing the right approach to managing paper after digitization is crucial. With the right ECM solution, and adhering to document imaging best practices, financial institutions can ensure secure, compliant, and efficient document handling.
Learn more about our ECM platform’s automated retention and disposal capabilities in this document.
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This article is for informational purposes only and is not to be taken as guidance or advice for your institution. Seek appropriate legal and compliance counsel before making decisions about retention.